The structure of an organization affects its responsibility accounting system. Accenture, a major management consulting firm, organizes its consultants by industry and location. Target, a retailer, has over 1,300 stores in 47 states, including more than 140 SuperTarget stores, as well as an online business. Monsanto, a manufacturer, structures its organization into two segments: Seeds and Genomics, and Agricultural Productivity (which includes Roundup and other herbicides).

What is a responsibility accounting system, what is it based on, and what is the criterion for including an item in a manager’s operating report? Discuss the general effects that organizational structure has on the creation of a responsibility reporting system, and give an example of a cost center, a profit center, and an investment center at Accenture, Target, and Monsanto.